CBI books private firm for cheating banks

New Delhi, Jan 9 (IANS) The Central Bureau of Investigation (CBI) has lodged an FIR against the Rama Krishna Knitters Private Limited (RKKPL), for allegedly cheating a consortium of four banks to the tune of Rs 161.91 crore.

The products of RKKPL were popular on international market and it had been enjoying the status of an "export trading house" as recognised by the Directorate General of Foreign Trade.

Two persons -- Shallu Gupta and Narinder Chugh have been named as an accused in the FIR.

According to the information, the federal probe agency received a complaint in this respect from the Punjab National Bank (PNB) that the firm had cheated the consortium of banks after availing loan facility of Rs 161.91 crore.

The alleged loan fraud was committed by the firm during the period of August 2010 and March 2016.

Rama Krishna Knitters firm was incorporated in 2007. The company had units in Ludhiana and Preet Vihar. The firm's main work was manufacturing knitted ready-made garments.

It had a production capacity of 50,000 to 60,000 pieces each day.

RKKPL had been exporting goods from the US, the United Arab Emirates, Armenia, Tajikistan and some other countries.

The FIR lodged by the CBI reads that the firm's status was later upgraded to export trading house.

The director of the company approached the PNB with a request of loan.

They told the bank that they wanted to expand their business, and hence needed loan.

Later on, the loan was sanctioned to the firm by a consortium of banks. In 2014, the managing director of the firm passed away. Later, a new Managing Director was appointed. The consortium of banks agreed for restructuring the credit facilities.

But the firm and the newly appointed managing director violated the terms of the loan.

Finally, in 2016, the banks declared the account of the firm as NPA. The banks found various financial irregularities in financial transactions.

A forensic analysis revealed several financial irregularities. The firm had allegedly transferred huge amount to several accounts for non business purpose. All these transactions were made before 2013.

The banks were shocked to find out during the financial analysis of the account that the firm received around Rs 38.71 crore from various persons, but they did not buy anything from the firm.

This was basically done to inflate the outstanding receivable position to ensure higher cash withdraw facility.

Now, after lodging a case, the CBI has formed a team of officials to look into the matter.